First Northern Community Bancorp Reports Fourth Quarter 2015 Earnings & 4% Stock Dividend

Net Income for the Quarter of $1.8 Million, up
12.5% from Prior Year

Loan Balances Reach All Time High of $606.2
Million, up 12.6% From Prior Year

Deposits Grow 10.6% to a New Record of $948.1
Million

DIXON, Calif.–(BUSINESS WIRE)–First Northern Community Bancorp (the “Company,” ticker symbol FNRN:
OTCQB), holding company for First Northern Bank (“First Northern” or the
“Bank”), today announced earnings through the fourth quarter of 2015.
Louise Walker, President and Chief Executive Officer, stated, “The
Company reported year-to-date net income of $6.9 million for the
twelve-month period ended December 31, 2015, up 17.0% compared to net
income of $5.9 million reported for 2014. Net income available to common
shareholders totaled $6.8 million for the period ended December 31,
2015, up 19.3% compared to net income available to common shareholders
of $5.7 million reported for 2014. Diluted earnings per share for the
twelve months ended December 31, 2015 was $0.64, up 18.5% compared to
diluted earnings per share of $0.54 for 2014.”

Net income for the quarter ended December 31, 2015 was $1.8 million, up
12.5% compared to net income of $1.6 million reported for the same
fiscal period last year. Net income available to common shareholders for
the quarter ended December 31, 2015 totaled $1.8 million, up 12.5%
compared to net income available to common shareholders of $1.6 million
reported for the same fiscal period last year. Diluted earnings per
share for the three months ended December 31, 2015 was $0.17, up 13.3%
compared to diluted earnings per share of $0.15 for the same fiscal
period last year.

Total assets at December 31, 2015 were $1.04 billion, an increase of
$86.7 million, or 9.1%, compared to year-end 2014. Total deposits of
$948.1 million increased $91.1 million, or 10.6%, compared to year-end
2014. During the same period, total net loans (including loans
held-for-sale) increased $67.7 million, or 12.6%, to $606.2 million. The
Company continues to be “well capitalized” under regulatory definitions,
exceeding the 10% threshold at December 31, 2015.

At its regular meeting on January 28, 2016, the Board of Directors of
the Company declared a 4% stock dividend, payable March 31, 2016 to
shareholders of record as of February 29, 2016. All income per share
amounts have been adjusted to give retroactive effect to the stock
dividend.

Further commenting on the Company’s financial results, Walker stated,
“Our net earnings increase was a result of strong commercial and small
business loan growth, and the resulting interest income generated from
those loans, as well as an increase in residential mortgage loan related
income, and the continued improvement in the real estate market in the
Bank’s lending areas. Credit quality also remained strong throughout
2015 which can be attributed to prudent management of the loan portfolio
and the positive effects of the improving economy on our borrowers’
businesses. On October 26, 2015, First Northern Community Bancorp
self-funded the retirement of the remaining $12,847,000 in preferred
stock it issued on September 20, 2011 to the U.S. Treasury under the
Small Business Lending Fund, with its risk-based capital level remaining
above the ‘well-capitalized’ threshold. We believe our demonstrated
financial strength will continue to drive improved value for our
shareholders.”

First Northern Bank, an independent community bank headquartered in
Solano County since 1910, serves Solano, Yolo, Sacramento, Placer,
Contra Costa County and the west slope of El Dorado County. First
Northern has nine full service branches located in Dixon, Davis, West
Sacramento, Fairfield, Vacaville, Winters, Woodland, Roseville, and
Auburn, and has a full service Trust Department in Sacramento. The Bank
also offers 24/7 real estate mortgage loans, SBA loans, and non-FDIC
insured Investment & Brokerage Services at each branch location. First
Northern’s Real Estate Mortgage Loan office is located in Davis, and
real estate loan representatives are available to meet customers at any
of the Bank’s branches by appointment. The Bank specializes in
relationship banking and employs experts in the area of small business,
commercial, agribusiness, and real estate lending, as well as wealth
management, and is rated as a “Superior” 5-Star Bank by BauerFinancial
Inc. (www.bauerfinancial.com).
The Bank can be found on the Web at www.thatsmybank.com,
on Facebook
and on LinkedIn.

Forward-Looking Statements

This press release may include certain “forward-looking statements”
about First Northern Community Bancorp (the “Company”). These
forward-looking statements are based on management’s current
expectations and are subject to certain risks, uncertainties and changes
in circumstances. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. More detailed information
about these risk factors is contained in the Company’s most recent
reports filed with the Securities and Exchange Commission on Forms 10-K,
10-Q and 8-K, each as it may be amended from time to time, which
identify important risk factors that could cause actual results to
differ materially from those contained in the forward-looking
statements. The financial information contained in this release should
be read in conjunction with the consolidated financial statements and
notes thereto included in the Company’s most recent reports on Form 10-K
and Form 10-Q. The Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances arising
after the date on which they are made. For further information regarding
the Company, please read the Company’s reports filed with the SEC and
available at
www.sec.gov.

Contacts

First Northern Community Bancorp & First Northern Bank
Louise
A. Walker, 707-678-3041
President & Chief Executive Officer